NEC : Presentation（559KB）

NEC IR Day 2022

Opening Remarks

~Progress of the Mid-Term Management Plan 2025~

September 7, 2022

Executive Vice President and CFO（Chief Financial Officer)

Osamu Fujikawa

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Progress of the Mid-Term Management Plan 2025

FY2021 Summary

• Exceeded the target for the first-year of the Mid-term Management Plan 2025, despite a highly fluctuating macro economy
• Carried out necessary measures in the first year and confirmed that we are heading in the right direction toward FY2025

FY2022 Outlook

• Macro economy to remain uncertain
• Delayed market recovery and demand partially slips in some businesses (Public Solution/Global 5G）

Aim to achieve the second-year targets of the Mid-Term Management Plan 2025 by addressing market fluctuations and capturing brisk DX demand Continue executing measures to achieve the Mid-Term Management Plan

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Progress of the Mid-Term Management Plan 2025

Three Growth Businesses (Details will be explained in each IR Day session)

		FY2021 Results
		 Completed PMI of Avaloq acquisition,
DG/DF		newly expanded business in APAC
	 Bolt-on M&A through SWS (UK)
		 Won large orders for Digital ID / DX in
		APAC

FY2022 Key Measures

 Expand Up-sell /Cross-sell
	Accelerate offshoring development
	Expand SaaS/software business
	Timely termination of low-profit
	businesses

Global

5G

Core DX

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• Won international commercial projects
• Reinforced global business structure (through M&A)
• Gained competitive advantage in cloud business through collaboration with "Hyperscalers"
  (Amazon Web Services, Microsoft, SCSK)

 Implement international commercial

projects

 Expand customer bases

 Enhance Open RAN product portfolio

 Secure projects in collaboration with

Abeam Consulting

 Enhance development and expand DX

offerings

 Develop and recruit DX talent

Progress of the Mid-Term Management Plan 2025

Areas where the CFO takes the lead to manage

Unprofitable

Businesses

Financial

Strategy

FY2021 Results

• Improved profitability by unconsolidating unprofitable businesses

(e.g. Display/Energy business)

• Reinforced monitoring system of unprofitable businesses
• Improved credit ratings of R&I, JCR and S&P
• Engaged in strategic investments as planned

FY2022 Key Measures

• Improve operating profit margin of low- profit businesses by 1% or more
• Select businesses that requires strategic measures
• Develop management system for capital efficiency
• Improve cash flow through proper inventory management
• Reduce CCC days and cross-shareholdings
• Continue strategic investments within the scope of profit expansion

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